Correlation Between Sanyo Chemical and Bangkok Bank
Can any of the company-specific risk be diversified away by investing in both Sanyo Chemical and Bangkok Bank at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Sanyo Chemical and Bangkok Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sanyo Chemical Industries and Bangkok Bank Public, you can compare the effects of market volatilities on Sanyo Chemical and Bangkok Bank and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Sanyo Chemical with a short position of Bangkok Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sanyo Chemical and Bangkok Bank.
Diversification Opportunities for Sanyo Chemical and Bangkok Bank
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sanyo and Bangkok is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Sanyo Chemical Industries and Bangkok Bank Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangkok Bank Public and Sanyo Chemical is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Sanyo Chemical Industries are associated (or correlated) with Bangkok Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bangkok Bank Public has no effect on the direction of Sanyo Chemical i.e., Sanyo Chemical and Bangkok Bank go up and down completely randomly.
Pair Corralation between Sanyo Chemical and Bangkok Bank
Assuming the 90 days horizon Sanyo Chemical Industries is expected to under-perform the Bangkok Bank. But the stock apears to be less risky and, when comparing its historical volatility, Sanyo Chemical Industries is 5.07 times less risky than Bangkok Bank. The stock trades about -0.02 of its potential returns per unit of risk. The Bangkok Bank Public is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 109.00 in Bangkok Bank Public on October 25, 2024 and sell it today you would earn a total of 309.00 from holding Bangkok Bank Public or generate 283.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sanyo Chemical Industries vs. Bangkok Bank Public
Performance |
| Timeline |
| Sanyo Chemical Industries |
| Bangkok Bank Public |
Sanyo Chemical and Bangkok Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sanyo Chemical and Bangkok Bank
The main advantage of trading using opposite Sanyo Chemical and Bangkok Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sanyo Chemical position performs unexpectedly, Bangkok Bank can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Bangkok Bank will offset losses from the drop in Bangkok Bank's long position.| Sanyo Chemical vs. VIENNA INSURANCE GR | Sanyo Chemical vs. QBE Insurance Group | Sanyo Chemical vs. Sabre Insurance Group | Sanyo Chemical vs. Reinsurance Group of |
| Bangkok Bank vs. Yuexiu Transport Infrastructure | Bangkok Bank vs. SPORT LISBOA E | Bangkok Bank vs. Games Workshop Group | Bangkok Bank vs. BII Railway Transportation |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |